First American Financial Corporation
- Open
- 74.87
- Day high
- 76.89
- Day low
- 74.86
- Prev close
- 74.05
- Volume
- 589K
- Mkt cap
- $7.8B
- P/E (TTM)
- 10.6
- EPS (TTM)
- $7.24
- P/B
- 1.4
- P/S
- 1.9
- Yield
- 2.88%
- Per share
- $2.20
- ▼Insiders net selling -$244K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
First American Financial Corporation (FAF) is a Financial Services company listed on NYSE. The stock is up 15% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4). Drillr has 1 published research article covering FAF.
First American Financial Corporation (FAF) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FAF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $1.81 | $2.08 | +15.2% | $2.1B | +3.8% |
| Apr 23, 2026 | $1.06 | $1.33 | +25.5% | $1.8B | +2.7% |
| Feb 11, 2026 | $1.49 | $1.99 | +33.6% | $2.0B | +13.8% |
| Oct 22, 2025 | $1.42 | $1.70 | +19.7% | $2.0B | +5.1% |
| Jul 23, 2025 | $1.40 | $1.53 | +9.3% | $1.8B | +0.2% |
| Apr 23, 2025 | $0.64 | $0.84 | +30.4% | $1.6B | +3.4% |
| Feb 12, 2025 | $1.13 | $1.35 | +19.5% | $1.7B | +3.7% |
| Oct 23, 2024 | $1.15 | $1.34 | +16.5% | $1.4B | -15.0% |
| Jul 24, 2024 | $1.16 | $1.27 | +9.5% | $1.6B | -3.4% |
| Feb 7, 2024 | $0.75 | $0.69 | -8.2% | $1.4B | -2.3% |
| Oct 26, 2023 | $1.09 | $1.22 | +12.0% | $1.5B | -7.1% |
| Jul 27, 2023 | $1.02 | $1.35 | +32.7% | $1.6B | +9.3% |
FAF insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 28, 2026 | Adams Steven Aofficer: VP & Chief Accounting Officer | Sell | 3,253 | $74.99 |
| Jul 28, 2026 | Adams Steven Aofficer: VP & Chief Accounting Officer | Sell | 0 | $75.43 |
| Jun 24, 2026 | Wajner Matthew F.officer: EVP, Chief Financial Officer | Tax | 619 | $68.63 |
| Jun 24, 2026 | Seaton Mark Edwarddirector, officer: Chief Executive Officer | Tax | 2,372 | $68.63 |
| Jun 24, 2026 | GILMORE DENNIS Jdirector | Grant | 14,570 | — |
| Jun 24, 2026 | Cornehl Lisa Wofficer: SVP, Chief Legal Officer | Tax | 160 | $68.63 |
| May 7, 2026 | Cornehl Lisa Wofficer: SVP, Chief Legal Officer | Sell | 5,823 | $68.63 |
| Apr 28, 2026 | McCarthy Margaret Mdirector | Sell | 6,630 | $70.59 |
| Feb 25, 2026 | Seaton Mark Edwardofficer: Chief Executive Officer | Tax | 5,323 | $66.34 |
| Feb 25, 2026 | Seaton Mark Edwardofficer: Chief Executive Officer | Tax | 7,030 | $67.36 |
| Feb 25, 2026 | Cornehl Lisa Wofficer: SVP, Chief Legal Officer | Tax | 1,753 | $66.34 |
| Feb 25, 2026 | Adams Steven Aofficer: VP & Chief Accounting Officer | Tax | 509 | $67.36 |
| Feb 25, 2026 | Adams Steven Aofficer: VP & Chief Accounting Officer | Tax | 381 | $66.34 |
| Feb 25, 2026 | Wajner Matthew F.officer: EVP, Chief Financial Officer | Tax | 670 | $66.34 |
| Feb 25, 2026 | Cornehl Lisa Wofficer: SVP, Chief Legal Officer | Tax | 1,563 | $67.36 |
Source: FAF SEC Form 4 filings, latest Jul 28, 2026. For informational purposes only — not investment advice.
See the full FAF insider & 13F page →First American Financial Corporation company profile
Overview
First American Financial Corporation (NYSE:FAF) is a leading provider of title insurance and specialty insurance services founded in 1889 and headquartered in Santa Ana, California. The company went public in 2010 and has grown to become one of the largest title insurance companies in the United States. First American operates through two primary business segments: Title Insurance and Services, which generates the majority of revenue, and Specialty Insurance, which includes home warranty services. The company serves customers across 49 states, the District of Columbia, and internationally in Canada, the United Kingdom, Australia, and South Korea through a network of direct operations and independent agents.
Business
First American Financial operates in the title insurance and specialty insurance industries, providing essential services that facilitate real estate transactions and protect property owners. The Title Insurance and Services segment represents approximately 85-90% of total revenue and provides title insurance policies that protect property buyers and lenders against financial losses from defects in property titles. Title insurance differs from other insurance types because it protects against past events rather than future risks - specifically, it covers issues like forged documents, undisclosed heirs, recording errors, or liens that existed before the property purchase but were unknown at the time of closing. This segment also offers related services including closing and escrow services (managing the transfer of funds and documents during property sales), property appraisals and valuations, lien release services, warehouse lending to mortgage originators, and various default-related services for distressed properties. The Specialty Insurance segment accounts for roughly 10-15% of revenue and primarily consists of the home warranty business. Home warranties are service contracts that cover the repair or replacement of major home systems and appliances (such as heating, air conditioning, plumbing, and kitchen appliances) when they fail due to normal wear and tear. Unlike homeowner's insurance which covers catastrophic events, home warranties provide coverage for the mechanical breakdown of everyday household systems. The company has been expanding its direct-to-consumer marketing in this segment to reduce dependence on real estate transaction-driven sales. First American also maintains extensive title plant operations - comprehensive databases containing historical property records, liens, and ownership information that are essential for conducting title searches and underwriting title insurance policies.
Revenue model
First American generates revenue through multiple streams tied to real estate market activity. The primary revenue model is premium collection from title insurance policies, where customers pay a one-time premium at closing to obtain coverage that lasts as long as they own the property. Unlike recurring insurance premiums, title insurance involves a single upfront payment, making revenue directly correlated to transaction volumes. The company's customers include homebuyers, real estate investors, mortgage lenders, and commercial property purchasers. Lenders typically require title insurance to protect their mortgage investments, while buyers purchase owner's policies to protect their equity. The company operates through both direct operations and independent agent networks, with agents receiving commissions for policies they originate. Investment income represents a significant secondary revenue stream, as First American invests the substantial float from collected premiums and claim reserves. With interest rates rising, investment income has become increasingly important, generating approximately $120-155 million per quarter. The business model faces several margin-influencing factors. Positive factors include rising interest rates (boosting investment income), increasing property values (higher premiums), market consolidation opportunities, and successful technology implementations that reduce processing costs. Negative factors include declining transaction volumes during market downturns, rising mortgage rates that suppress refinancing activity, increased competition from alternative products like Attorney Opinion Letters, regulatory changes affecting pricing, and significant technology investment costs that currently create a 140 basis point margin drag. The company's profitability is highly cyclical, with margins expanding during robust real estate markets and contracting during downturns. Commercial real estate transactions tend to be less volatile and more profitable than residential transactions, providing some stability during residential market weakness.
Competitive moat
First American's competitive moat is moderately strong but faces emerging challenges. The company benefits from several traditional protective factors including extensive title plant databases accumulated over 135 years that contain irreplaceable historical property records essential for title searches. These databases create significant barriers to entry as competitors would need decades to build comparable resources. Regulatory barriers provide additional protection, as title insurance is heavily regulated at the state level with complex licensing requirements, capital adequacy standards, and rate approval processes that limit new entrants. The company's established agent network relationships and brand recognition with real estate professionals create switching costs and customer loyalty. However, the moat is being tested by several disruptive forces. Alternative products like Attorney Opinion Letters (AOLs) are gaining limited traction in some markets, offering cheaper alternatives to traditional title insurance, though their coverage limitations have restricted adoption. Technology disruption poses both opportunity and threat - while First American is investing heavily in automation and digital processes through initiatives like Sequoia and Endpoint, technology could eventually commoditize title services or enable new competitors to enter with lower cost structures. The company's moat strength varies by market segment. The commercial title business maintains stronger competitive positioning due to transaction complexity and relationship-driven sales, while residential title services face more commoditization pressure. The home warranty business operates in a more competitive environment with lower barriers to entry, though First American's real estate channel relationships provide some advantage. Overall, First American maintains a solid but not impregnable competitive position that requires continued investment in technology and relationships to preserve market share.
Risks & safety
First American demonstrates strong financial stability with substantial liquidity and manageable debt levels, though profitability remains cyclically sensitive. **Liquidity and Solvency:** - Cash and short-term investments: $1.7-2.0 billion providing substantial financial flexibility - Current ratio: 2.22 (Q1 2025) indicating strong short-term liquidity - Debt-to-equity ratio: 0.50, representing moderate leverage levels - No immediate solvency concerns given strong balance sheet **Operational Cash Flow:** - Operating cash flow: $897.5 million (FY 2024), demonstrating strong cash generation - Free cash flow: $679.2 million (FY 2024), providing ample funds for dividends and buybacks - Cyclical variations: Negative free cash flow in Q1 2025 (-$94.5 million) reflects seasonal patterns **Valuation Metrics:** - P/E ratio: 22.95 (Q1 2025), reasonable for a cyclical financial services company - Price-to-book ratio: 1.36, suggesting modest premium to book value - EV/EBITDA: 12.20, indicating moderate valuation levels **Other Considerations:** - Strong investment portfolio generating $120-155 million quarterly income - Regulatory capital requirements well-maintained across insurance subsidiaries - Diversified revenue streams reduce concentration risk
Recent development
First American has undergone significant leadership transitions and strategic technology investments over the past few years. In 2025, Mark Seaton was appointed as the new CEO, replacing Ken DeGiorgio, while Matt Wazner became CFO and Dennis Gilmore transitioned to Executive Chairman. The new leadership has committed to continuing the current business strategy while emphasizing data and technology capabilities. The company's most significant strategic initiative involves comprehensive technology platform modernization. The Sequoia pilot program for automated underwriting in purchase transactions has exceeded expectations and is expanding from pilot markets to California-wide rollout. Simultaneously, the Endpoint settlement platform is being developed to digitize and streamline the closing process, with national rollout plans expected by year-end 2025. These technology investments currently create a 140 basis point margin drag but are expected to improve efficiency and reduce administrative tasks over time. In the specialty insurance segment, First American has pivoted toward direct-to-consumer marketing in its home warranty business to reduce dependence on real estate transaction volumes. The direct-to-consumer channel now accounts for 42% of home warranty contracts, representing a strategic diversification away from transaction-dependent revenue. The company completed a strategic investment portfolio rebalancing project that generates approximately $67 million in additional annual interest income, helping offset potential Federal Reserve rate cuts. This initiative demonstrates proactive asset-liability management during changing interest rate environments. ServiceMac, the mortgage subservicing business, achieved profitability and has grown to become the fifth-largest subservicer in the market, representing successful expansion into adjacent financial services. The company has also been selectively pursuing market share gains in commercial real estate, capitalizing on broad-based strength across nine of eleven tracked asset classes and benefiting from improved price discovery in commercial markets.
FAF company profile · for informational purposes only — not investment advice.
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